Do you have a pension pot you’ve forgotten about?

You might be sitting on one, or several, pensions without even realising it. And you’re far from alone if you are.

Recent data from InvestEngine shows that Nest, the UK’s largest workplace pension scheme, has 13.7m accounts, but only 3.88m are currently receiving contributions. The rest are dormant.

This doesn’t necessarily mean people have stopped saving. Many of these pots were created through auto-enrolment.

What is auto-enrolment?

Since it was introduced in 2012, auto-enrolment has meant that your employer must set up a workplace pension for you automatically if you meet certain conditions. You’ll be enrolled if:

• you usually work in the UK
• you’re aged between 22 and state pension age
• you earn more than £10,000 a year, or pass the weekly/monthly earnings thresholds
• you don’t already have a suitable workplace pension

This applies even if you’re on a short-term or zero-hours contract, or away on maternity, paternity, shared parental, adoption or carer’s leave.

If your earnings fall below the £10,000 threshold, contributions pause, and that’s how another small pension pot gets left behind.

Lower and middle income workers experience this most, often ending up with several small pots over the years.

Nest says the average pot value is £3,218 for women and £4,924 for men.

These aren’t full retirement savings, they’re usually just small slices of a bigger picture.

Over time, you can easily build up multiple pension accounts across different employers and providers. And it’s no surprise if you forget where some of them are or how much they’re worth.

But losing track of an old pension could mean you’re underestimating your future retirement income.

What should you do next?

• Start by tracking down every pension you have.
• Ask your current employer which pension provider they use.
• Use the government’s Pension Tracing Service to find pensions from previous jobs.

Before moving anything, check for charges, benefits, or guarantees tied to each pot. You can get free guidance from Pension Wise online.

How to find old pensions

The Pension Tracing Service is free and simple to use. Just enter the names and addresses of your past employers. The service will give you the pension provider’s contact details so you can get in touch and confirm:

• how much your pot is worth
• how it’s invested
• what your options are if you want to move or manage it differently

Should you consolidate old pensions?

After tracking down your old pensions, you might want to combine them into one pot, such as your current workplace scheme or a private pension.

For some, this can be easier to manage and give people a clearer oversight of their retirement savings.

But consolidation isn’t the right option for everyone.

Some pensions come with valuable benefits or guarantees that you might lose if you transfer them. 

So before making any changes, check the terms of each pension.

Even if you don’t make any changes now, simply knowing where your pensions are and how much they’re worth can help you feel more in control of your long-term finances.